- 26 -
Id. at 68. In view of the fact that the committee "was
part of the 'package' of the Trust", the Court held that
delivery of the pension fund check to the pension committee
"constituted delivery to the trust." Id.
Thus, the tax matters partner argues in the instant
case that delivery of the contribution agreement and
ratification to Mr. Stein, the trustee of the trust, had
the same effect as delivery of the check in Dick Bros.,
Inc. v. Commissioner, supra. According to the tax matters
partner, the execution and delivery of the contribution
agreement and ratification transferred legal title to the
underlying stock from petitioners to the partnership and
back to Mr. Stein as trustee of the trust.
We agree with the premise of the argument made by the
tax matters partner that the partnership must have received
and must have transferred legal title to the Saztec stock
to the trust. Otherwise, if legal title to the underlying
stock was not transferred to the trust, it would be
difficult to find that the trust had received anything and
that there had been "an outlay of cash or other property"
as necessary in order to qualify for the section 404(a)
deduction. See Don E. Williams Co. v. Commissioner, 429
U.S. at 578-579.
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